What are the four main components of aggregate demand

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1. What are the four main components of aggregate demand? Which is the largest? Which is the smallest?

2. Which of the following acts constitute investment according to the economist's definition of that term?

a. Pfizer builds a new factory in the United States to manufacture pharmaceuticals.

b. You buy 100 shares of Pfizer stock.

c. A small drugmaker goes bankrupt, and Pfizer purchases its factory and equipment.

d. Your family buys a newly constructed home from a developer.

e. Your family buys an older home from another family. (Hint: Are any new products demanded by this action?)

Reference no: EM131353951

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